COMPANY NEWS

COMPANY NEWS; JUDGE APPROVES BANKRUPTCY PLAN FOR HOULIHAN'S

Published: September 19, 2002

Houlihan's Restaurants Inc., which had filed for Chapter 11 bankruptcy protection because of heavy competition in the casual-dining industry, won court approval for its reorganization plan. Judge Arthur B. Federman of United States Bankruptcy Court approved a plan allowing holders of about $70 million in secured bank debt to receive $12 million in five-year term debt, $30 million in preferred stock redeemable in five years and 100 percent of the company's common stock, the company said. The restaurant chain, which is based in Kansas City, Mo., will have access to a $10 million credit facility, provided by a syndicate led by Fleet National Bank. The company expects to emerge from bankruptcy protection by Oct. 1, said its bankruptcy attorney, Larry Frazen.